TORONTO, Sept 11 (Reuters) - The Canadian dollar fell
versus the U.S. dollar on Thursday after data showed Canada's
trade surplus narrowed more than expected in July.

Domestic bond prices were higher across the curve alongside
the bigger U.S. Treasury market given the Canadian data and a
report that showed the number of U.S. workers filing first-time
claims for jobless benefits was higher than expected.

At 9:30 a.m. (1330 GMT), the Canadian unit was at C$1.0732
to the U.S. dollar, or 93.18 U.S. cents, down from C$1.0697 to
the U.S. dollar, or 93.48 U.S. cents, at Wednesday's close.

The Canadian dollar was knocked back and forth early in the
session as the market was torn between unloading the currency
on the weaker domestic data or selling the U.S. dollar after a
report showing a wider U.S. trade deficit for July.

After the two reports, the Canadian dollar bounced around
in a range of C$1.0743 to the U.S. dollar, and C$1.0700 to the
U.S. dollar before finally settling below its pre-data level.
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